The BT share price will be in the spotlight today after reports emerged that company was in talks with Rupert Murdoch. The stock rose to 201p on Monday and is up by more than 103% from its lowest level in 2020.
BT Group news: BT, the giant telecommunication company, is said to be holding talks with billionaire Rupert Murdoch’s News UK. The goal is to create a tie-up between News UK and BT’s sports television arm. As we wrote a while ago, BT is exploring ways to part with its sports franchise as it focuses on its broadband product.
The two companies have appointed bankers from Lazard to come up with a deal. Still, there is a possibility that the two companies will not reach a deal. For one, Dazn, a new company backed by Sir Leonard Blavatnik, is considering making a deal with BT.
The new revelations by The Telegraph, come two weeks after billionaire Patrick Drahi became the biggest shareholder in BT with a 12.1% stake. Drahi is a well-known tycoon who owns Altice, a giant conglomerate with a global footprint. His stake in BT is worth more than $3 billion.
The BT share price has been in a strong upward trend in the past few months. The stock remains slightly below the important resistance level at 210p, which was the highest level in 2020. It also seems to be forming a cup and handle pattern, which is usually a sign of bullish continuation.
It is also above the 25-day and 50-day exponential moving averages while the Relative Strength Index (RSI) has been in an upward trend. Therefore, the path of least resistance for the stock is upwards. Still, we cannot rule out a situation where the stock retreats slightly as it forms the handle section of the cup and handle pattern.
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